Hey Gotraders,
Happy Monday! It’s a quiet week in terms of earnings with only a handful of companies releasing earnings this week.
Shareholders of Affirm (AFRM), the buy now, pay later company, will be happy that shares closed over 34% higher on Friday! Yep, that’s right. 34%! 🤯
Shares soared after the company released quarterly earnings and wow-ed investors! Here are the figures they reported:
Revenue of $261.8 million, up 71% year over year.
Active merchants soared to nearly 29,000, up over 400%, driven in part by Affirm's partnership with e-commerce leader Shopify (SHOP).
Active consumers grew 97% to 7.1 million.
People are also using Affirm's services more often, with transactions per active consumer rising 8%, to roughly 2.3.
Affirm issued upbeat guidance for the current quarter as well.
Why is this important? Investors were obviously pleased with Affirm’s current quarter’s performance and forecast for the year ahead. Affirm expects revenue to grow by roughly 35% to $1.2 billion in fiscal year 2022.
Actual revenue may be higher as these figures did not take into account any benefit from Affirm's partnership with Amazon (AMZN). Amazon plans to offer Affirm's "buy now, pay later" services to its customers in the coming months.
📈 Judge forces Apple to allow developers to use external-app purchasing methods 👨⚖️
Apple (AAPL) was dealt a massive blow as a federal judge made a ruling in the Apple - Epic Games case. The judge issued an injunction that said Apple will no longer be allowed to prohibit developers from providing links or other communications that direct users away from Apple in-app purchasing. Ouch! The injunction will come into effect in December. This is a massive blow to Apple as they usually take a 15% to 30% commission of gross sales.
Shares of Apple closed at $148.97, down 3.31% for the day.
📈 Oatly stock gets upgraded ✅
Shares of Oatly (OTLY) closed nearly 6% higher after Cowen initiated coverage of the stock and ranked it as “outperform.” The firm thinks that Oatly has a “long runway for growth” and that Oatly has a “significant opportunity” given its global footprint and first-mover advantage in Asia. Credit Suisse (CS) also added Oatly to its list of top outperform picks last week. Greeeat! 👏
Oatly closed at $17.45, up 5.82% for the day. Shares are up a further 2% in extended trading at the time of writing.
Top movers & shakers 🎢
What else is making headline news 📰
Facebook (FB) to buy $100 million worth of unpaid invoices from 30,000 small businesses owned by women and minorities.
Grubhub (GRUB), DoorDash (DASH), Uber Eats (UBER) sue New York City over fee caps.
AMC (AMC) and GameStop (GME) see retail trading interest dip as new meme stocks rally.
Charts suggest the stock market’s September struggles may get ‘even uglier,’ says Jim Cramer.
Amazon (AMZN) is likely the front-runner for a multiyear NFL Sunday Ticket deal, sources say.
McDonald's (MCD) and Beyond Meat (BYND) launch the McPlant sandwich in U.K and Ireland.
Popular companies releasing earnings this week 💰
Monday: Oracle (ORCL)
Tuesday: FuelCell Energy (FCEL)
Friday: Manchester United (MANU)
A company’s market value may fluctuate considerably around the time that the earnings report is expected to be published. Stock prices may rise or fall according to analysts' speculative estimates, released prior to the actual earnings announcement.
The earnings season can be a time of great opportunity since better-than-expected figures could cause a company’s stock to greatly increase in value. Worse-than-expected results could have the opposite effect.
That’s all from us for now.
Signing out,
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The legal stuff 🤓
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